Two former top IWK officials charged in wake of expenses scandal

Former top officials at the IWK Health Centre are facing charges including fraud and breach of trust more than a year after they left the hospital amid misspending allegations.

Former CEO Tracy Leanne Kitch, 57, of Oakville, Ont., was arrested at her home Oct 23. Former CFO Stephen D’Arcy, 55, of Toronto surrendered to police.

Kitch is charged with fraud over $5,000 and breach of trust, Halifax Regional Police said in a news release. D’Arcy faces charges of breach of trust, unauthorized use of computer and mischief to data.

Both are scheduled to appear in Halifax provincial court on Dec. 20.

Kitch quit as the IWK’s CEO in August 2017 after it was discovered she had used a corporate credit card to pay for personal expenses. An accounting firm identified $48,000 in questionable expenses.

The executive’s corporate credit card statements reportedly included thousands of dollars charged by The Bay last November, multiple charges from iTunes and Netflix, and more than $2,000 for a limousine service.

Kitch joined the IWK in August 2014 and was earning an annual salary of $296,289.

She was previously the executive vice-president of patient care and chief nursing executive at Mount Sinai Hospital in Toronto.

D’Arcy left the IWK in September 2017.

“We are pleased this matter is moving forward. As it is now before the courts we will not be commenting further,” said IWK board chairwoman Karen Hutt in a news release Oct. 23.

The board asked police to investigate Kitch’s travel and hospitality expenses after auditor Grant Thornton probed her spending.

Dr. Krista Jangaard took over as interim CEO after Kitch’s departure and was recently hired in the role permanently.